Mortgage Investing

Mortgages as Investments

For any investment portfolio, mortgage investments are a great alternative to traditional fixed income options such as bonds or Treasury Bills.

Private Mortgages

A “private” mortgage is funded by an individual investor or by a group of investors instead of a bank or trust company. Interest paid by the borrower becomes income for the investors. Private mortgage lenders have the same legal security in a mortgage as banks and other institutional lenders do. As with bank mortgages, all documentation, security registration and disbursement of funds are prepared and handled by a professional.

Meridian Mortgage Corporation can help you to invest in private mortgages in one of two ways:

Mortgage Pool

Investors “pool” their money by putting it into a trust called a Mortgage Investment Fund (MIF). An MIF is a Trust organized for investors to invest in pools of mortgages. Profits generated by an MIF are distributed to its investors according to their proportional interest. Like an equity mutual fund, an MIF provides a convenient way to diversify a portfolio of investments; in this case mortgages instead of stocks or bonds. UNLIKE most mutual funds, your money is secured by real estate, which is not generally influenced by the volatility of the stock market.

The investor in an MIF earns a blended rate of return based on the interest earned from each respective mortgage. The pool is continuously managed with new mortgages replacing mortgages that mature.

An MIF is for those investors who want a rewarding yet effortless investment. Your income is deposited directly into your account and a quarterly statement keeps you up to date on your investments.

Meridian Mortgage Fund MIF

Mortgage investments through the Meridian Mortgage Fund MIF are medium-term and provide superior returns. All investments are secured by real property and pay quarterly income. The Meridian Mortgage Fund MIF has many great features: Mortgage as investments

Specific Mortgage Syndication

Whereas an MIF invests in a portfolio of mortgages, specific mortgage syndication involves an investor or group of investors investing in one specific mortgage at a time. Beyond a minimum investment, an investor is free to contribute any amount they like towards the full loan amount. When the mortgage matures and is paid out, usually within 6-18 months, the funds are returned to the investor.

A syndicated mortgage investment is more “hands-on” than the Meridian Mortgage Fund investment, as the syndicated investor chooses exactly which project(s) to invest in.

Due to continuing strong economic growth, demand for mortgages in the Turks and Caicos Islands remains high. Returns of 9-10% are currently being achieved by investors in syndicated mortgages. Contact Us today for details of specific projects requiring mortgage financing and see what rate of return you could achieve on a private mortgage investment arranged through Meridian Mortgage Corporation.

Meridian Trust Company Ltd is a Turks & Caicos Islands corporation licensed as a professional trustee under the Trustee Ordinance (1992). Established in 1996, Our Services range from Company Formation to the administration of complex trust and fund structures.